question

Which of the following is the reason why the international marketer's task is more complicated than that of the domestic marketer?`

answer

The international marketer must deal with at least two levels of uncontrollable uncertainty instead of one.

question

Which of the following is a controllable element in the environment of an international marketer?

answer

Research activities

question

Elements such as geography and infrastructure, level of technology, and cultural forces in the marketing environment of an international marketer are regarded as _____.

answer

uncontrollable elements

question

Denimen Group, a clothing brand, is looking to establish itself in Northern Ireland and is devising a plan to market its products. A lot of factors in the domestic environment can have an impact on their success. Which of the following elements in the market can be altered by the team to adjust to market conditions?

answer

Pricing strategies

question

A person's _____ can prevent him from being aware of the existence of cultural differences or from recognizing the importance of those differences.

answer

self-reference criterion

question

Justin, who works as a manager in a global enterprise with a diverse workforce, is of the opinion that the employees from his country are more time-conscious and good at taking decisions. He always allots responsible positions to people from his country and trusts them more compared to other employees. This notion of Justin is referred to as _____.

answer

ethnocentrism

question

To be _____ is to be tolerant of cultural differences and to have knowledge of cultures, history, world market potential, and global economic, social, and political trends.

answer

globally aware

question

Which of the following factors favors faster internationalization?

answer

Firms with key managers well networked internationally.

question

A company in the _____ stage of international marketing involvement sells its goods to foreign markets only when there is a surplus due to variations in production levels. Such a company has little or no intention of maintaining continuous market representation.

answer

infrequent foreign marketing

question

A company at the stage of international marketing:

answer

sells products that are a result of planned production for markets in various countries.

question

Balance of payments is best defined as:

answer

The system of accounts that records a nation's international financial transactions.

question

Tariffs, quotas, and nontariff barriers designed to shelter a country's markets from intrusion by foreign companies are indicative of _____.

answer

Protectionism

question

Which of the following best defines a quota?

answer

It is a specific unit or dollar limit applied to a particular type of good.

question

_____ are absolute restrictions against the purchase and importation of certain goods and/or services from other countries.

answer

Boycotts

question

_____ refer to agreements between the importing country and the exporting country for a cap on the volume of exports.

answer

Voluntary export restraints

question

Antidumping laws were primarily aimed at:

answer

Preventing foreign producers from using predatory pricing

question

_____ was the original agreement that provided a process to reduce tariffs and create an agency to serve as a watchdog over world trade.

answer

The GATT (General Agreement on Tariffs and Trade)

question

The ____, unlike its predecessor it replaced, provides for a trade dispute process as well as provides a permanent, comprehensive forum to address the trade issues of the 21st century global market.

answer

The WTO

question

To encourage development of industry and protect existing industry, governments may establish such barriers to trade as tariffs and a variety of _______ including quotas, boycotts, monetary barriers and market barriers.

answer

Non-tariff Barriers

question

The _____ and the _____ are two global institutions created to assist nations in becoming and remaining economically viable by maintaining stability in financial markets and by assisting countries that are seeking economic development and restructuring.

answer

The Monetary Fund (IMF) and World Bank

question

When designing a product, the style, uses, and other related marketing activities must:

answer

be made culturally acceptable.

question

Whatever the degree of acceptance of a novel product in a market, the use of something new is the beginning of cultural change, and the marketer becomes a(n) _____.

answer

change agent

question

In the context of the origins and consequences of culture in global marketing, humans make adaptations to changing environments through _____.

answer

innovation

question

According to Hofstede, which of the following pertains to societies in which everyone is expected to look after himself or herself and his or her immediate family?

answer

Individualism

question

Cultures with _____ tend to be hierarchical, with members citing social roles, manipulation, and inheritance as sources of power and social status

answer

high Power Distance Index

question

_____ are important because they coordinate everyday interactions and special occasions, and let people know what to expect.

answer

Rituals

question

Product styling must be _____ to be successful, as must advertisements and package designs.

answer

aesthetically pleasing

question

Being attuned to the nuances of culture so that a new culture can be viewed objectively, evaluated, and appreciated is indicative of:

answer

cultural sensitivity.

question

With regard to resistance to change, innovations that hold the greatest interest within a society, and are least disruptive are the ones that:

answer

are readily accepted into society.

question

Neo footwear has just opened its branch in Japan. Since they found that products with a Manga theme were thriving in the market, they decided to launch a range of Manga-themed footwear. It became an instant success, as the company had predicted. This is an example of:

answer

cultural congruence.

question

A lack of _____ for and knowledge of foreign business practices can create insurmountable barriers to successful business relations.

answer

empathy

question

Which of the following is true of cultural electives?

answer

They relate to customs that cultural aliens may wish to conform to or participate in but that are not required.

question

Which of the following is true of management styles in the United States?

answer

Personnel selection and reward must be made on merit.

question

Which of the following management concepts of the United States reflects the belief that change is not only normal but also necessary, that nothing is sacred or above improvement?

answer

Never-ending quest for improvement.

question

In the context of management styles in collectivist cultures, such as Japan and China, _____ is more salient and efficiencies are attained through reduced transaction costs.

answer

cooperation

question

No matter how thoroughly prepared a marketer may be when approaching a foreign market, a certain amount of _____ occurs when differences in the contact level and communications emphasis are encountered.

answer

cultural shock

question

A low-context culture depends more on:

answer

explicit, verbally expressed communications.

question

Which of the following is true of P-time?

answer

It lays emphasis on the completion of a human transaction.

question

In the context of business ethics, which of the following is true of subornation?

answer

Its purpose is to entice an official to commit an illegal act.

question

Which of the following is a characteristic of information-oriented cultures?

answer

Low distance from English

question

Which of the following is true of a sovereign state?

answer

It has the power to enter into agreements with other nations.

question

Which of the following is a political cause for instability in international markets?

answer

Nationalism

question

Which of the following can be understood as a manifestation of feelings of nationalism?

answer

A call to "buy our country's products only."

question

Which of the following is considered to be a political risk?

answer

Confiscation

question

Expropriation is:

answer

when the government seizes an investment but makes some reimbursement for the assets.

question

Countries often require a portion of any product sold within the country to contain locally made parts. This relates to _____.

answer

local-content laws

question

Relations between governments and MNCs are generally positive if the investment:

answer

uses locally produced resources

question

Which of the following strategies can be effective in forestalling or minimizing the effect of a total takeover of a multinational corporation's holdings by a foreign government?

answer

Expanding the investment base

question

_____ can be with locals or other third-country multinational companies to limit a company's financial exposure.

answer

Joint ventures

question

In cases in which a host country is demanding local participation, the most effective long-range solution is _____.

answer

planned domestication

question

Which of the following forms the basis of the legal system in Marxist-socialist economies of Russia and the Republics of former Soviet Union?

answer

Commercial legal system

question

The legal system in Salmia is based on all inclusive system of written rules of law. According to the legal system, ownership is established by registration, and agreements are not enforceable unless properly notarized or registered. The legal system in Ukraine is based on _____ law.

answer

code

question

The legal system in Lenya is based on interpretations of the Koran. It encompasses religious duties and obligations, as well as the secular aspect of law regulating human acts. Which of the following laws forms the basis of the legal system in Lenya?

answer

Islamic law

question

Which of the following is true regarding the method of conciliation used to solve commercial disputes?

answer

Its sessions are private and all the conferences between the parties and mediator are confidential.

question

If an international dispute cannot be resolved through conciliation, the next step is _____.

answer

arbitration

question

Two international firms have had dispute over the right to a specific patent. The two companies have approached the International Chamber of Commerce to appoint a third party as a referee to resolve their dispute. The third party is attempting to resolve the dispute through a standard process and the decision taken by this authority is enforceable under law. The dispute resolution method being used is referred to as _____.

answer

arbitration

question

Laurel group is involved in a dispute with an electronics company over the registration of a trademark. The two companies have failed to reach an agreement and hence proceedings are now being conducted in an open court to resolve the dispute. Which of the following dispute resolution methods is being used to resolve the dispute between the two companies?

answer

Litigation

question

In the United States, a common-law country, ownership of IP rights is established by:

answer

prior use.

question

The Foreign Corrupt Practices Act in the United States:

answer

makes it illegal for companies to pay bribes to foreign officials, candidates, and political parties.

question

Which of the following judicial concept holds that even if an act is committed outside the territorial jurisdiction of U.S. courts, those courts can nevertheless have jurisdiction if the act produces effects within the home country?

answer

Objective theory

question

Commercial sources, trade associations, management groups, and state and local governments provide a marketing researcher with a good source of _____ data.

answer

secondary

question

Which of the following questions should be asked by a marketing researcher when trying to establish the reliability of secondary data sources in the international arena?

answer

How were the data collected?

question

Which of the following is a problem associated with the use of secondary data?

answer

Comparability of data

question

Before launching its latest line of health drinks, a beverage manufacturer provided free samples of the health drinks to a large and culturally diverse set of families. It then conducted a survey where the participants were asked to rate those health drinks on a step-wise scale of "not satisfied" to "extremely pleased." This is an example of _____ research.

answer

quantitative

question

Which of the following statements is true about qualitative research?

answer

It includes direct observation of consumers in choice or product usage situations.

question

If after seeking all reasonable available data sources, research questions are still not adequately answered, the market researcher must collect _____ data.

answer

primary

question

In many countries, telephone directories, cross-index street directories, census tract and block data, and detailed social and economic characteristics of the population being studied are not available on a current basis, if at all. Which of the following aspects of market research is this situation most likely to affect?

answer

The sampling process

question

Marketers use different techniques to help ferret out translation errors ahead of time. Which of those techniques involves using more than two translators for the back translation, comparing the results, discussing differences, and selecting the most appropriate translation?

answer

Parallel translation

question

The key in using expert opinion to help forecast demand is _____, that is, comparing estimates produced by different sources.

answer

triangulation

question

Given the greater uncertainties and data limitations associated with foreign markets, two methods of forecasting demand are particularly suitable for international marketers. Which of the following is one of those methods?

answer

Analogy

question

Which of the following integrates generalized goals for the enterprise as a whole?

answer

Corporate planning

question

Which of the following is true about tactical planning?

answer

It addresses marketing and advertising questions.

question

Which of the following phases of the international planning process provides the marketer with the basic information necessary to evaluate the potential of a proposed country market and identifies problems that would eliminate the country from further consideration?

answer

Matching company and country needs

question

Which of the following modes of foreign market entry offers the most control and the highest potential return for a company?

answer

Direct foreign investment

question

In which of the following phases of the international planning process a marketing mix is decided upon that is adjusted to the cultural constraints imposed by the uncontrollable elements of the environment that effectively achieves corporate objectives and goals?

answer

Phase 2

question

Which of the following market entry strategies is considered the least risky?

answer

Exporting

question

The advantages of _____ are most apparent when capital is scarce, import restrictions forbid other means of entry, a country is sensitive to foreign ownership, or patents and trademarks must be protected against cancellation for nonuse.

answer

licensing

question

Which of the following refers to a business relationship established by two or more companies to cooperate out of mutual need and to share risk in achieving a common objective without forming a separate legal entity?

answer

A strategic international alliance

question

How is a joint venture different from other types of strategic alliances or collaborative relationships?

answer

It involves the creation of a separate legal entity

question

Which of the following refers to a partnership of two or more participating companies that have joined forces to create a separate legal entity to facilitate doing business in a country where none of the participants are currently active?

answer

A joint venture

question

The _____ quality attributes are embedded in the total product, that is, the physical or core product and all the additional features the consumer expects.

answer

market-perceived

question

McDonald's modified their burgers in India to use chicken, instead of beef, to meet the cultural requirements of the local market. This is an example of:

answer

product homologation

question

The local government in Norfolk Island has developed strict laws that favor environmentally-friendly products. The government has passed legislation to reduce air pollution by making it mandatory for firms to shift to cleaner coal, electricity, and gas, and also requires that the packaging material is recycled and reused. These measures taken up by the government to identify concern with the environmental impact of various marketing activities is known as _____.

answer

green marketing

question

Which of the following statements is true regarding product adaptation?

answer

The extent of adaptation required depends on cultural differences in product use and perception between the market the product was originally developed for and the new market.

question

A product's _____ refers to the perceived marginal value of the new product relative to the old.

answer

relative advantage

question

If a company is making changes to its product before introducing it to a foreign market by trying to make it acceptable with the behavior, norms, and values in the foreign market, the company is trying to enhance the _____ of the product.

answer

compatibility

question

Which of the following helps identify all the possible ways a product may be adapted to a new market by separating its many dimensions into three distinct components?

answer

Product Component Model

question

The three distinct components of the Product Component Model are packaging, support services, and _____.

answer

core component

question

The government of Northern Ireland has made it mandatory that all support services of the products of foreign firms that are being marketed in their country, have to originate within their country and not from locations outside. This move of the government is intended to shield the domestic industry and employment. Which of the following barriers is being imposed by the government in the above scenario?

answer

Protectionism.

question

Consumers have broad but somewhat vague stereotypes about specific countries and specific product categories that they judge "best": English tea, French perfume, Chinese silk, Italian leather, Jamaican rum, and so on. These are examples of:

answer

country-of-origin effect

question

Which of the following factors account for greater market similarities among industrial goods customers than among consumer goods customers?

answer

The motive or intent of the users

question

The demand for Boeing 747s is dependent on the worldwide consumer demand for air travel services. This is an example of:

answer

derived demand.

question

Industrialized economies such as Korea and the Czech Republic focus on low-cost manufacturing of a variety of consumer and some industrial goods. Which stage in Rostow's five-stage model of economic development are they in?

answer

Drive to maturity

question

Service economies where design activities are going on and manufacturing techniques are being developed are in the _____ stage in Rostow's five-stage model of economic development.

answer

age of mass consumption

question

Total quality management (TQM) requires:

answer

involving customers in product development.

question

Which of the following is true of the ISO 9000 certification?

answer

It certifies the existence of a quality control system that ensures that a company can meet published quality standards.

question

Which of the following statements is true about the American Customer Satisfaction Index (ACSI)?

answer

The appeal of the ACSI is its focus on results, that is, quality as perceived by product and service users.

question

Which of the following is an argument used to justify indirect trade barriers that restrict foreign companies from entering domestic markets?

answer

The protection of infant industries.

question

Which of the following is an example of client following?

answer

A firm shifts base to a foreign country to serve its clients there and then begins to serve local clients

question

Which of the following statements is true about trade shows?

answer

Trade shows provide the facilities for a manufacturer to exhibit and demonstrate products to potential users and to view competitors' products.

question

Which of the following processes include the passage of ownership (title) and the buying and selling negotiations between producers and middlemen, and between middlemen and customers?

answer

Distribution channel

question

In a traditional distribution structure, market penetration and mass distribution are not necessary because:

answer

demand exceeds supply and the customer seeks the supply from a limited number of middlemen

question

_____ middlemen work on commission and arrange for sales in the foreign country but do not take title to the merchandise.

answer

Agent

question

_____ middlemen take title to manufacturers' goods and assume the trading risks.

answer

Merchant

question

In the context of the different types of middlemen, Disney and Benetton are examples of _____.

answer

manufacturers' retail stores

question

A major disadvantage of export management companies is that:

answer

they can seldom afford to make of the kind of market investment needed to establish deep distribution for products.

question

Which of the following is true of manufacturer's export agents?

answer

They operate on a straight commission basis.

question

Which of the following is one of the six Cs of distribution channel strategy?

answer

Coverage

question

Which of the following is also known as secondary wholesaling?

answer

Parallel importing

question

Which of the following is true of a physical distribution system?

answer

It includes transportation mode, inventory quantities, and packing.

question

_____ is/are short-term efforts directed to the consumer or retailer to achieve such specific objectives as consumer product trial or immediate purchase, consumer introduction to the store or brand, gaining retail point-of-purchase displays, encouraging stores to stock the product, and supporting and augmenting advertising and personal sales efforts.

answer

Sales promotions

question

Which of the following best describes encoding in the international communications process?

answer

Conversion of the message from the source into effective symbolism for transmission to a receiver.

question

In the context of the process of international communications, effective communication demands the existence of a "________" between the sender and the receiver.

answer

Psychological overlap

question

Errors such as Pepsi's "Come Alive" slogan being interpreted as "Come out of the grave", and Chevrolet's brand name for the Nova model (which means new star) being translated into Spanish as No Va!, meaning "it doesn't go" are examples of problems associated with _______ in the international communications process.

answer

Decoding

question

_____ comprises external influences, such as competitive advertising, other sales personnel, and confusion at the receiving end that can detract from the ultimate effectiveness of the communication.

answer

Noise

question

_____ may diminish the role of advertising in the promotional program and may force marketers to emphasize other elements of the promotional mix.

answer

Media limitations

question

Which of the following is an advantage multinational advertisement agencies have over local agencies?

answer

They are better able to provide a coordinated worldwide advertising campaign.

question

Which of the following media has changed the pace and reach of word-of-mouth advertising?

answer

The Internet

question

Which of the following consists of consumer-generated content?

answer

Social media marketing

question

Why have bodies like the International Advertising Association developed self-regulatory codes to ensure that the majority of ads conform to standards set for "honesty, truth, and decency?"

answer

To prevent government intervention

question

The chief disadvantages of a(n) _____ sales force are the high cost, cultural and legal barriers, and the limited number of high-caliber personnel willing to live abroad for extended periods.

answer

Expatriate.

question

Which of the following statements is true regarding expatriates?

answer

They add to the prestige of the product line in the eyes of foreign customers

question

Neil is a U.S. national, who is posted at his company headquarters in the U.S. He is in charge of the native sales force operating in France. In view of the given information, we can say that Neil is a:

answer

Virtual expatriate

question

Which of the following is an advantage of hiring local nationals in the sales force?

answer

They are better able to lead a company through the maze of unfamiliar distribution systems.

question

Expatriates from their own countries working for a foreign company in another country are known as:

answer

Third-country nationals.

question

Which of the following is typically true of third country-nationals (TCNs)?

answer

TCNs are sought because they speak several languages and know an industry or foreign country well.

question

Which of the following qualities is desirable for international marketing personnel?

answer

They must work independently without constant recourse to the home office.

question

Short-term assignments for expatriates involve payments of overseas premiums, sometimes called _____ allowances, if the family does not go along.

answer

Separation

question

In the context of global compensation, which of the following is a favorable practice?

answer

Allowing local managers to decide the mix between base and incentive pay

question

Karen, an American citizen, who works for a multinational company, is preparing to return to the U.S. after completing a three-year assignment in Germany. What is this process called?

answer

Repatriation

question

A clothing company sold its denims in developing nations at low prices to compete in the local market. It soon found that these discounted denims were being exported to several other countries where they were in direct competition with the same denims sold for higher prices by the same firm. In the other countries, these denims are a part of:

answer

The gray market

question

Which of the following is true of exclusive distribution?

answer

It is often used by companies to maintain high retail margins

question

A company charges a premium on its latest cell phone to tap the cell phone market that is found to be relatively price insensitive. Which pricing policy is the company following?

answer

Price Skimming

question

Artemis Inc. increased its market share by intentionally offering products at low prices. This policy helped the firm acquire and hold its share of market as a competitive maneuver. Which of the following pricing policies was used by Artemis Inc.?

answer

Penetration pricing

question

Which term relates to situations in which the ultimate prices in a foreign market are raised by shipping costs, insurance, administrative costs, or exchange rate fluctuations?

answer

Price escalation

question

Which of the following is true of tariffs?

answer

A product can be modified to qualify for a lower tariff rate within a tariff classification.

question

Which of the following is true of foreign trade zones (FTZ)?

answer

An FTZ is a tax-free enclave and not considered part of the country as far as import regulations are concerned

question

Which of the following is true of dumping?

answer

Countervailing duties can be levied if it is shown that domestic producers are being directly harmed by dumping of foreign goods

question

Jeff Foods Ltd., a British corporation, produces and sells a variety of potato chips. When the firm wanted to set up a chips factory in Romania, the Romanian government asked Jeff Foods to accept Romanian wine in order to be allowed to do so. This is an example of _____.

answer

Countertrade

question

A group of international firms decide to set the prices of a key chemical ingredient that is used in the production of fertilizers. They do this by restricting the quantity produced of the chemical and allocating market territories to each firm. In other words, these firms are called _____.

answer

A cartel

question

In the context of international business negotiations, representing Japanese negotiators as having a samurai kind of company loyalty is an example of:

answer

Stereotyping

question

"Americans make decisions based upon the bottom line and on cold, hard facts." This statement reflects the American notion of the importance of:

answer

Objectivity

question

Which is the next step after selection of an appropriate negotiation team for efficient and effective international business negotiations?

answer

Management of preliminaries such as training and location of talks

question

Which of the following is an important skill in international business negotiations?

answer

Listening ability

question

Which of the following is the first step of the international business negotiations process?

answer

Nontask sounding

International Marketing Chapter 1-19 – Flashcards

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